ITALY: Fiat warns of further plant shutdowns as supplier disruption bites
Fiat says further plants are at risk following supply disruption to its Maserati plant in Grugliasco, as well as stoppages at sites in Serbia and Spain.
The Italian automaker maintains the Selmat Group has not met its "supply obligations," following similar action last week and insists the situation is causing "significant damage" to the Fiat Group.
"Those supply shortages also resulted in stoppages at the Fiat Automobiles plant in Serbia and the Iveco plant in Madrid, where activities have been shut down since Friday" (10 May), said a Fiat statement. "Other plants are also at risk of having to halt activities in the next few days.
"The situation is causing significant damage to Fiat Group, as well as the other suppliers, who have continued to meet their delivery commitments. Several thousand workers were affected and last Friday.
Fiat has not pulled its punches with its supplier highlighting the "serious situation, which has now remained unresolved for some time," making it concerned for the future of the relationship with the component maker.
It also hints at possible staffing implications, noting the "inevitable consequences for workers," adding several Fiat plants have been forced to suspend production as a result of "the failure by Selmat to meet its delivery commitments."
Reports are circulating the supplier had agreed a stoppage with Fiat, but Selmat CEO, Enzo Maccheronne, was not immediately available for comment from Turin to confirm that position.